Growing signs of unrest in the Labor party appeared Monday following the resignation of respected Knesset Member Dr. Ephraim Sneh, who last year was fired as Deputy Defense Minister by party chairman and Defense Minister Ehud Barak. He said he is forming a new party called "Strong Israel."

MK Amir Peretz, who was ousted last year in the party leadership primaries, criticized his successor's performance. "The party does not take any initiative and has no agenda," he charged at a caucus meeting. He expressed sorrow over the departure of Sneh from the Knesset, who probably will be replaced by Druze party member Shakib Shanan.

MK Yoram Marciano also was reported to be considering leaving the party to sign up with the new Social Justice party headed by Arcadi Gaydamak, but he vehemently denied the rumor.